California winemakers stand to gain a lot if the Supreme Court
sides with them in three appeal cases challenging how individual
states regulate their out-of-state alcohol sales.
California winemakers stand to gain a lot if the Supreme Court sides with them in three appeal cases challenging how individual states regulate their out-of-state alcohol sales.
Approximately 22 states, including Florida and New York, only allow distributors to sell alcohol produced out-of-state to their stores. That means people can’t cut out the middle man and buy California wines in those states over the Internet or by phone.
The practice has forced many local, smaller wineries, such as Pietra Santa and Leal, from growing in other markets because the laws vary from place to place and, as one winemaker said, it is sometimes easier to send wine to other countries than to other states.
Caught in the middle of this power struggle are the many small wineries found throughout our region.
The current system of regulation in these 22 states really only protects the middleman – the distributors who profit from the exclusive right to sell out-of-state alcohol at a significant mark-up. Ultimately, that hurts the consumer who pays inflated prices for a limited selection of the wine produced in the U.S. And it damages the backbone of our nation’s economy – the small businessman trying to get his product to the public.
These appeals are not a challenge to individual states’ right to regulate alcohol sales. It is only an attempt to make states treat in-state and out-of-state producers equally, and end the unfair, state-sponsored protection of alcohol distributors. Although states gained the right to regulate their own alcohol laws when prohibition was ended, the federal government still controls inter-state commerce and this is a clear violation of free trade in our country.
With the nation’s economy still in turmoil, individual states should not build artificial trade barriers to protect their local businesses and distributors. Consumers should have the freedom of choice and every opportunity to buy products made in the U.S.
No one is suggesting states relinquish their ability to create their own alcohol laws, only that in-state and out-of-state producers get an level playing field.
We hope the Supreme Court allows consumers, not lawmakers and distributors, to decide which wine they fill their glasses with.
